All eyes were on the Budget 2019 which was tabled on Nov 2 by the new government as it had to strike a balance between achieving growth and managing the country’s debt.

Malaysians were probably not expecting a bag of goodies to be announced in the budget given the challenging environment but there was much outrage over the proposed implementation of a perpetual Real Property Gains Tax (RPGT) of 5% upon sale from the sixth year of purchase onwards.

Currently, the RPGT for citizens and permanent residents is 30% if they dispose of their property within three years, 20% in the fourth year and 15% in the fifth year. Beyond five years, the gains are not taxable.

Essentially, under the proposed measure, Malaysians will have to pay RPGT even if they have held their property beyond the minimum number of years required to enjoy zero tax on their gains.

Syarikat Ong Sdn Bhd managing partner Agnes Wong feels that the property sector is not quite ready for a perpetual RPGT, although this has been implemented in other Asean countries.